Three financial services compliance lessons from the Royal Commission

Three financial services compliance lessons from the Royal Commission

Financial Services
Today we continue to look at financial services compliance.“It’s not enough, is it… to have those policies and procedures in place? Financial advisers need to comply with them”[1]. So asked assisting counsel last week in the second round of hearings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (the Royal Commission). The fallout from the last week of hearings has been extensive, including the resignation of the AMP CEO and indications of impending law reform.[2]  We discussed some issues that arose in the first round of hearings here https://www.compliancequarter.com.au/royal-commission-round-one-the-home-loan-introducer-program/. [caption id="attachment_4184" align="aligncenter" width="640"] Photo by Rob Potter on Unsplash[/caption] This second round has focused on: charging fees for financial advice that is not provided or not provided in full (fees for no service); provision…
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Upcoming changes to dispute resolution: the new Australian Financial Complaints Authority

Upcoming changes to dispute resolution: the new Australian Financial Complaints Authority

Financial Services
The Australian Financial Complaints Authority (AFCA) is the proposed new dispute resolution body for the financial sector. Last week, the Government announced the latest step in the establishment of this new body with the appointment of a transition team for its establishment. By Dr Drew Donnelly, Compliance Quarter In today’s article, we summarise the proposals to date for overhauling external dispute resolution in financial firms. Note, that it is proposed that ‘financial firms’ be defined broadly so that the new framework will affect and apply to a vast range of businesses including: All Australian Financial Services (AFS) licensees credit providers regulated superannuation funds approved deposit funds retirement savings account providers and life policy funds and insurers. The transitional arrangements The focus for the newly appointed team is to ensure a…
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The low-down on the retail client money reforms for OTC derivatives

Financial Services
Today’s article is our third piece on OTC derivatives regulation in Australia. In today’s piece, we take a look at the new Treasury Laws Amendment (2016 Measures No. 1) Act 2017 (the Amendment Act), which was passed in to law in April of this year. This new law strengthens the regulatory regime for entities that trade over-the-counter (OTC) derivatives to retail clients.   By Dr. Drew Donnelly, Compliance Quarter.  The Amendment Act has a transition period of 12 months so that industry and regulators can getup to speed. Background: lack of protection for retail clients We have already mentioned the difference between the regulatory environment for financial products (such as derivatives), that are traded in financial markets, and those that are traded OTC (see OTC derivatives trading in Australia –…
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Are you up-to-date with your obligations as a financial professional? Five quick questions

Are you up-to-date with your obligations as a financial professional? Five quick questions

Financial Services
Are you up-to-date with your obligations as a financial professional? Five quick questions We recently looked at some key regulatory changes in the financial services sector affecting both the FinTech and banking industries. A common theme through these changes is a clear commitment to cracking down on unethical and unprofessional behaviour in the sector. Furthermore, there is an ongoing Senate committee inquiry into the ‘Scrutiny of Financial Advice’, reviewing the current regulatory framework for financial advisors. We will have to wait until the committee reports back on 30 June 2017 to see if further changes lay in store for the sector. In the meantime, here is a five-question mental checklist for all those in the industry: 1) Have I kept pace with the latest industry and economic trends? In order…
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